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Continued social and economic progress in Brazil will depend on high employment, sustained labor productivity and income growth, and opportunities for the poor and disadvantaged to upgrade their own productivity and convert it into sustainable incomes.
We document the short-term impact of the COVID-19 pandemic on the Brazilian labor market focusing on employment, wages and hours worked using the nationally representative household surveys PNAD-Continua and PNAD COVID. Sectors most susceptible to the shock because they are more contact-intensive and less teleworkable, such as construction, domestic services and hospitality, suffered large job losses and reductions in hours. Given low income workers experienced the largest decline in earnings, extreme poverty and the Gini coefficient based on labor income increased by around 9.2 and 5 percentage points, respectively, due to the immediate shock. The government’s broad based, temporary Emergency Aid transfer program more than offset the labor income losses for the bottom four deciles, however, such that poverty relative to the pre-COVID baseline fell. At a cost of around 4 percent of GDP in 2020 such support is not fiscally sustainable beyond the short-term and ended in late 2020. The challenge will be to avoid a sharp increase in poverty and inequality if the labor market does not pick up sufficiently fast in 2021.
Skills and Jobs in Brazil: An Agenda for Youth is a new report focusing on the challenge of economic engagement among the Brazilian youth. In the context of a fast aging population, Brazil’s greatest economic opportunity is to increase its labor productivity, especially that of youth. This report documents important new facts about the extent of the youth economic disengagement, while at school and at work. Today, close to half of the Brazilian youth aged 15-29 years old is not fully economically engaged, because they are neither working nor studying, are studying in schools of poor quality, or are working in informal and precarious jobs. The report shows how the youth prospects in the labor market are dimmed by policies favoring existing workers over new entrants; in addition, it shows how youth are often ill equipped to meet an increasingly challenging labor market. The report suggests new education, skills, and jobs policy changes that Brazil could prioritize moving forward, so that it can take advantage of the last wave of its demographic transition. The report discusses in particular depth policies aiming to increase learning and reduce school dropouts in upper secondary education, and labor market policies that aim to support more effective and faster youth transitions from school to work.
This book investigates how non-state actors have become key drivers of the diffusion of the UN 2030 Agenda for Sustainable Development in Brazil. The UN ranks Brazil as the most biodiverse country in the world, but the country’s environment has never been under greater threat, with the rise of multiple crises bringing mounting challenges to socioeconomic development and environmental protection. As state support has fallen away, non-state actors have actively engaged and eventually mobilized other social actors towards the promotion of the SDGs and the implementation of the UN agenda. This book asks why it is that non-state actors have dedicated so much time, effort and resources to promote a non-binding agenda that was ratified by and is mainly assigned to state actors. Looking at the roles of academia, civil society, and the private sector, the book explores the different ways in which these social actors make sense of and translate the 2030 Agenda into practice within their respective local contexts. Drawing on extensive fieldwork, this book sheds light on a series of challenges, opportunities and contradictions within the global agenda and its implementation. Assessing what the Brazil case can teach us about the diffusion of the 2030 Agenda and the SDGs more broadly, this book will be of interest to academics in the field of Sustainable Development, Latin America Studies and Environmental Politics as well as sustainable development researchers and policy makers.
Brazil approaches its 2018 election with an economy that is gradually recovering from the deepest recession in its recent economic history. However, for many Brazilians, the recovery has not yet translated into new and better jobs, or rising incomes. This book explores the drivers of future employment and income growth. Its key finding: Brazil needs to dramatically improve its performance across all industries in terms of productivity if the country is to provide better jobs for its citizens and generate lasting gains in incomes growth for all. This is particularly important as Brazil is aging rapidly and the boost the country has enjoyed thanks to its young and growing labor force in the past decades will disappear in just a few years’ time. The book recommends a change in the relationship between the state and business, from rewarding privileged incumbents to fostering competition and innovation—together with supporting workers and firms to adjust to the demands of the market. The book is addressed to all scholars and students of Brazil’s economy, especially those interested in why the country’s economic performance has not kept up with earlier achievements since the reintroduction of democracy in the mid-1980s. Its conclusions are urgent and pertinent but also optimistic. With the right policy mix, Brazil could enter the third century of its independence in 2022 well on track to join the ranks of high income countries.
The COVID-19 pandemic has caused severe human suffering and triggered a deep recession in Brazil. Economic policies reacted in a timely and decisive manner to the crisis, supporting millions of Brazilians. But a strong and inclusive recovery from the recession will require long-lasting improvements in economic policies. Improving fiscal outcomes remains one of Brazil’s principal challenges given a high debt burden, to which the pandemic has added significantly. Public spending will need to become more efficient, including by building on past progress in the fight against corruption and economic crimes. Social protection can be strengthened through a better focus on the most effective policies and benefits, which could allow significant reductions in inequality and poverty. Stronger growth will hinge on raising productivity, which has been virtually stagnant for decades. This requires addressing underlying policy challenges, including reducing regulatory burdens, reforming taxes, strengthening judicial efficiency and fostering a stronger integration into the global economy. Raising productivity implies reallocations and structural changes in the economy, which should be accompanied by well-designed training and education policies. Training with a strong focus on local skill demand can help workers master the transition and seize new opportunities to move into better jobs. SPECIAL FEATURES: BOOSTING PRODUCTIVITY; SKILLS POLICIES TO FACILITATE STRUCTURAL ADJUSTMENT
Social deprivations coincide with vast deforestation in Brazil's Legal Amazon, or Amazônia. Poverty reduction and sustainable development require renewed efforts to protect the region's exceptional natural wealth, coupled with a shift from an extractive to a productivity-oriented growth model.
Strong growth and remarkable social progress over the past two decades have made Brazil one of the world’s leading economies, despite the deep recession that the economy is now emerging from. However, inequality remains high and fiscal accounts have deteriorated substantially, calling for ...
Demonstrates how specific dimensions of democracy - participation, citizenship rights, and an inclusionary state - enhance human development and well-being.
Chapter 1 of the report covers the short-term prospects and provides an analysis of the external factors affecting the region's economic slowdown. The focus is on the adjustment challenges faced by those Latin American countries experiencing a major adverse terms of trade shock, which comes after an unprecedented (in magnitude and duration) period of terms of trade bonanza. Chapter 2 discusses the key topic of this semiannual report, that is, the implications of the slowdown for labor markets on jobs and wages. We describe the broad labor market trends observed during the boom and contrast them with the patterns observed during the slowdown. We also describe the implications of the slowdown for inequality. A corollary of the observed labor market patterns during the slowdown is that some of the gains towards greater income equality achieved in the past decade or so may be reversed, at least in part, and that we may see a divergence between labor income inequality and household income inequality, whereby the latter may rise more than the former.--Résumé de l'éditeur.